Industry News
Vail Resorts has reiterated its intentions to grow in Europe, the largest ski market in the world with almost 200 million annual skier visits. After purchasing majority shares in Andermatt in 2022 and Crans-Montana in 2023, the American conglomerate has created a first footprint in Switzerland. Both resorts were experiencing financial difficulties in the past, leading to their subsequent sale to Vail Resorts.
It is safe to assume that Vail Resorts has put out its feelers for other resorts experiencing financial distress across the Alps. With no foothold in Austria or France yet, a ski resort needing financial support in either of those two countries would make a desirable target for Vail Resorts’ acquisition strategy. In its European strategy, Vail Resorts has pursued resorts that already had foreign investors and were in need of a financial injection. Following that pattern, there are currently several Austrian resorts that would fit that description, but only one that would be of adequate size: Heiligenblut in the shadow of the Grossglockner peak, which reaches 3,798 meters (12,461 feet).
The Austrian resort Heiligenblut has been facing trouble for some time. The resort is harder to reach than other, bigger resorts, meaning it relies on overnight stays rather than daytrippers. In 2001, the resort was taken over by two local families, Schmidl and Schröcksnadel, from the municipality. However, economic issues persisted, and the 23/24 season could only go ahead after a last-minute loan was granted by the local community, however, operations were limited and three lifts were shut for the season to save money. There was talk of dismantling or mothballing some of the lift infrastructure while the resort was looking for a solution for the 24/25 season.
In July, two new private investors were found, who bought a minority stake of 10% in the resort. The stake could grow to 30% over time. The new business partners have not revealed the level of their investment. The investors have been named as Thomas Seitlinger and Johannes Böck. Seitlinger owns an investment and real estate holding company. Both Seitlinger and Böck hold investments in hotels and a lack of hotel beds is one of the key issues Heiligenblut is facing. Heiligenblut is too far for daytrippers, and the lack of guest beds makes operating the ski resort at a profitable level uneconomical. It would require substantial investment in the hotel infrastructure to attract enough tourists to operate the ski resort profitably.
This would be the logical place for a strategic partner like Vail Resorts to enter the scene. The American conglomerate has the financial resources and the industry know-how to make the right infrastructure investment. In addition, bringing U.S. visitors to the Austrian resort by means of the Epic Pass could yield the desired improvement in skier visits the resort needs. Since Vail Resorts purchased Andermatt, the number of tourists from North America has gone from 5% to 20%—a boost Heiligenblut could only dream of.
Heiligenblut is located located in the Mölltal area in Carinthia/Kärnten, about two hours south of Salzburg Airport. It offers 47 kilometers (29 miles) of groomed runs and 9 kilometers (5.6 miles) of backcountry skiing serviced by 10 lifts with an hourly capacity of 9,050 pax. The lift infrastructure is mostly modern, with gondolas and a four-person chair lift. The ski terrain is located at an altitude of 1,301 meters (4,268 feet) and 2,989 meters (9,806 feet). The main issues are the lack of hotel beds and the resulting lack of visitors, an issue Vail Resorts could easily address.
Of course, the question is how the current owners and Austrian locals would perceive an investment by the American conglomerate. However, maybe this is the right strategic partner for a struggling but idyllic resort. It would offer a win-win deal for both Vail Resorts and Heiligenblut, and potential prejudice against a foreign corporate investor could hopefully be overcome for the greater good.
